Ibm Executive Settles

Insider-trading Lawsuit

March 7, 1994|Bloomberg Business News

NEW YORK — An International Business Machines Corp. sales executive has agreed to settle allegations that he participated in an insider-trading ring that stole confidential information from the New York law firm Skadden, Arps, Slate, Meagher & Flom.

Edwin V. Karger, 46, settled the Securities and Exchange Commission civil lawsuit by agreeing to relinquish $326,000, or about half the $660,415 in insider-trading profit he made in 1990, the SEC said. The agency said it didn't seek a larger penalty because Karger couldn't afford it.

Karger bought securities in two takeover targets, Norton Industries Inc. and Square D. Inc., after he was tipped off by Seymour Gleeman, an IBM co-worker. Gleeman got insider information from his son's friend, Christopher Garvey, then a paralegal in Skadden's mergers and acquisitions department.